Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry

Simon Anderson, Federico Ciliberto, Jura Liaukonyte and Régis Renault

No 5418, CESifo Working Paper Series from CESifo

Abstract: We derive equilibrium incentives to use comparative advertising that pushes up own brand perception and pulls down the brand image of targeted rivals. Data on content and spending for all TV advertisements in OTC analgesics enable us to construct matrices of dollar rival targeting and estimate the structural model. Using brands. optimal choices, these attack matrices identify diversion ratios, from which we derive comparative advertising damage measures. We find that comparative advertising causes more damage to the targeted rival than benefit to the advertiser. We simulate banning comparative advertising to find industry profits rise.

Keywords: comparative advertising; advertising targets; diversion ratios; attack matrix; push and pull effects; analgesics (search for similar items in EconPapers)
JEL-codes: L13 L65 M37 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Push-me pull-you: comparative advertising in the OTC analgesics industry (2016)
Working Paper: Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry (2012)
Working Paper: Push-Me Pull-You: Comparative Advertising in the OTC Analgesics Industry (2012)
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